WASHINGTON, D.C. – The U.S. Commodity Futures Trading
Commission (CFTC) today announced the filing of an injunctive
complaint
in the United States District Court for the Southern
District of Florida against Wilshire Investment Management
Corporation (WIMC) and Andrew Alan Wilshire of
Jupiter, Florida, Eric Scott Malcolmson of Tequesta,
Florida, James Joseph Russo of Palm Beach Garden, Florida,
and National Commodities Corporation, Inc. of Fort
Lauderdale, Florida.

The complaint alleges that since at least September 2000, the
defendants WIMC, Wilshire, Malcolmson, and Russo fraudulently
solicited customers by misrepresenting the likelihood that a
customer would realize large profits from commodity options
trading and by misrepresenting the risk involved in trading
commodity options. According to the complaint, these defendants
also misled customers about the effect current events would have
on option prices by citing well-known public information that was
already factored into the options prices. As also alleged, during
the course of their solicitations, these defendants failed to
disclose their excessively poor trading record.

The complaint also alleges that, pursuant to an agreement signed
by the two companies in September 2000, National Commodities
Corporation is WIMC's guarantor, and thus is jointly and
severally liable for all of WIMC's obligations.

The CFTC is seeking preliminary and permanent injunctions against
defendants, repayment of defrauded customers, the return of
ill-gotten gains, and monetary penalties for violating the
Commodity Exchange Act.

The following CFTC Division of Enforcement staff members are
responsible for this case: Rachel Entman, Jason Gizzarelli, Karen
Kenmotsu, Gretchen L. Lowe and Richard Wagner.